- "Its main thinkers are held to be Adam Smith, Jean-Baptiste Say, David Ricardo, Thomas Robert Malthus, and John Stuart Mill."
This topic covers the works of classical economists such as Adam Smith, David Ricardo, and Karl Marx. It discusses their contributions to economic thought and their ideas about capitalism, labor, and value.
Mercantilism: An economic theory prevalent in the 16th to 18th century that believed in the accumulation of wealth through trade surplus, protectionism, and control of colonies.
Physiocracy: A French school of political economy in the 18th century that emphasized the importance of natural resources and agriculture as the backbone of the economy.
Adam Smith’s Wealth of Nations: A book published in 1776 that laid down the ideas of classical economics such as the division of labor, free market, the invisible hand, and the role of government in the economy.
David Ricardo’s Theory of Comparative Advantage: A theory that suggests that countries should specialize in producing goods and services that they have a comparative advantage in, and trade for other goods and services.
Malthusianism: A school of thought that emphasizes the danger of population growth relative to food production, which leads to poverty and social unrest.
Utilitarianism: A philosophical belief that suggests maximizing utility, or happiness, is the ultimate goal of social progress and economic activity.
Karl Marx’s Das Kapital: A book that offers a critique of capitalism from a socialist perspective, and emphasizes the importance of class struggle for economic and political change.
Neo-Classical Economics: A school of economics that emphasizes the role of individual choice, market efficiency, and the importance of scientific methods in understanding economic phenomena.
Keynesianism: A school of thought that emphasizes the role of government in stabilizing the economy through fiscal and monetary policy during times of economic crisis.
Austrian School of Economics: A school of economics that emphasizes the importance of individual liberty, free markets, and the role of entrepreneurship in economic development.
Mercantilism: This theory emphasizes the importance of a country's trade balance and the accumulation of wealth through exports, tariffs, and protectionism.
Physiocracy: This theory stresses the importance of agriculture and the belief that the value of goods arises from natural resources and labor.
Classical Liberalism: This theory supports free-market capitalism, unrestricted competition, and minimal governmental intervention.
Marxism: This theory criticizes capitalism and advocates for a socialist economic system that prioritizes collective ownership and central planning.
Neo-classical Economics: This theory combines classical liberalism's support of markets with the progressive understanding of governments' role in regulating them.
Keynesian Economics: This theory proposes that the government increases spending and printing additional money to stimulate economic activity during economic downturns.
Austrian School: This theory supports free markets and minimal government intervention but highlights the importance of individual freedom and voluntary exchanges.
Institutionalist Economics: This theory emphasizes the importance of social, cultural, and political factors in economic activity.
Public Choice Theory: This theory applies the study of economics to the decision-making processes of governments and elected officials.
Supply-side Economics: This theory thinks reducing government regulation associated with taxes and individual behavior will boost economic growth.
- "The fundamental message in Smith's book was that the wealth of any nation was determined not by the gold in the monarch's coffers, but by its national income."
- "The division of labour and the use of accumulated capital."
- "The classical economists were pragmatic liberals, advocating the freedom of the market, though they saw a role for the state in providing for the common good."
- "Smith acknowledged that there were areas where the market is not the best way to serve the common interest."
- "He warned repeatedly of the dangers of monopoly, and stressed the importance of competition."
- "The classical economists were advocates of free trade, which distinguishes them from their mercantilist predecessors, who advocated protectionism."
- "The designation of Smith, Ricardo and some earlier economists as 'classical' is due to a canonization which stems from Karl Marx's critique of political economy."
- "He critiqued those that he at least perceived as worthy of dealing with, as opposed to their 'vulgar' successors."
- "There is some debate about what is covered by the term classical economics, particularly when dealing with the period from 1830 to 1875, and how classical economics relates to neoclassical economics."